[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4965 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4965

   To amend the Internal Revenue Code of 1986 to reduce the employer 
portion of payroll taxes in the case of employers who expand payroll in 
2010 and 2011 in areas with high unemployment and to make permanent the 
  research and development credit, bonus depreciation, and increased 
                         expensing limitations.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2010

   Mr. Donnelly of Indiana introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to reduce the employer 
portion of payroll taxes in the case of employers who expand payroll in 
2010 and 2011 in areas with high unemployment and to make permanent the 
  research and development credit, bonus depreciation, and increased 
                         expensing limitations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Targeted Job Creation and Business 
Investment Act''.

SEC. 2. REDUCTION IN EMPLOYER PORTION OF PAYROLL TAX FOR CERTAIN 
              EMPLOYERS INCREASING PAYROLL.

    (a) In General.--In the case of any calendar quarter beginning in 
2010 or 2011, the aggregate amount of employer payroll tax deposits of 
an employer shall be reduced by an amount equal to the applicable 
percentage of the payroll increase of such employer for such calendar 
quarter which is attributable to wages paid to a qualified individual.
    (b) Definitions and Special Rules.--For purposes of this section--
            (1) Employer payroll tax deposits.--The term ``employer 
        payroll tax deposits'' means deposits an employer is required 
        to make under section 6302 of the Internal Revenue Code of 1986 
        of taxes imposed on such employer under section 3111 of such 
        Code with respect to individuals in his employ.
            (2) Applicable percentage.--The applicable percentage shall 
        be--
                    (A) in the case of any calendar quarter beginning 
                in 2010, 15 percent, and
                    (B) in the case of any calendar quarter beginning 
                in 2011, 10 percent.
            (3) Payroll increase.--
                    (A) In general.--The term ``payroll increase'' 
                means, with respect to an employer for a calendar 
                quarter, the excess (if any) of--
                            (i) the aggregate amount of wages (as 
                        defined in section 3121(a) of such Code) paid 
                        by such employer to all employees for such 
                        calendar quarter, over
                            (ii) aggregate amount of inflation adjusted 
                        wages paid by such employer to all employees 
                        for the same calendar quarter in the preceding 
                        calendar year.
                    (B) Wages.--The term ``wages'' has the meaning 
                given such term by section 3121(a) of such Code for 
                purposes of section 3111(a).
                    (C) Inflation adjusted wages.--The term ``inflation 
                adjusted wages'' means an amount equal to--
                            (i) wages with respect to an employee, 
                        multiplied by
                            (ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year for which the reduction in 
                        deposits under this section is being determined 
                        occurs, determined by substituting `calendar 
                        year 2009' for `calendar year 1992' in 
                        subparagraph (B) thereof.
            (4) Qualified individual.--The term ``qualified 
        individual'' means any individual--
                    (A) who begins employment with a qualified employer 
                after February 3, 2010, and before January 1, 2012,
                    (B) whose principal place of employment with such 
                employer is certified by the employer as being within a 
                county the unemployment rate of which is not less than 
                8.5 percent (as determined by reference to the most 
                recent unemployment data announced by the Bureau of 
                Labor Statistics of the Department of Labor for the 
                month during which such individual begins employment),
                    (C) who is not employed by the qualified employer 
                to replace another employee of such employer unless 
                such other employee separated from employment 
                voluntarily or for cause, and
                    (D) who is not an individual described in section 
                51(i)(1).
            (5) Excess reductions treated as refundable.--
                    (A) In general.--The amount of employer payroll tax 
                deposits of an employer for any quarter shall not be 
                reduced below zero under subsection (a).
                    (B) Excess treated as payment of tax.--
                            (i) In general.--The amount by which the 
                        reduction for any calendar quarter under 
                        subsection (a) would (but for subparagraph (A)) 
                        have exceeded the aggregate employer payroll 
                        tax deposits of the employer for such quarter 
                        shall be treated as a payment of the tax 
                        imposed by subtitle A of such Code for the last 
                        taxable year ending before such calendar 
                        quarter ends.
                            (ii) Timing.--Secretary shall, subject to 
                        the provisions of such Code, refund or credit 
                        any overpayment attributable to this section as 
                        rapidly as possible.
                            (iii) No interest.--No interest shall be 
                        allowed on any overpayment attributable to this 
                        section.
            (6) Denial of double benefit.--The amount of any deduction 
        allowable to the employer under chapter 1 of such Code for 
        taxes paid under section 3111 of such Code with respect to 
        employment during any calendar quarter shall be reduced by the 
        amount by which the employer payroll tax deposits of such 
        employer are reduced under subsection (a) for such quarter.
            (7) Wages must be for trade or business.--A rule similar to 
        the rule of section 51(f) of such Code shall apply.
            (8) Adjustments for certain acquisitions, etc.--Under 
        regulations prescribed by the Secretary--
                    (A) Acquisitions.--If, after December 31, 2009, an 
                employer acquires the major portion of a trade or 
                business of another person (hereafter in this paragraph 
                referred to as the ``predecessor'') or the major 
                portion of a separate unit of a trade or business of a 
                predecessor, then, for purposes of applying this 
                section for any calendar quarter ending after such 
                acquisition, the amount of wages or compensation deemed 
                paid by the employer during periods before such 
                acquisition shall be increased by so much of such wages 
                or compensation paid by the predecessor with respect to 
                the acquired trade or business as is attributable to 
                the portion of such trade or business acquired by the 
                employer.
                    (B) Dispositions.--If, after December 31, 2009--
                            (i) an employer disposes of the major 
                        portion of any trade or business of the 
                        employer or the major portion of a separate 
                        unit of a trade or business of the employer in 
                        a transaction to which paragraph (1) applies, 
                        and
                            (ii) the employer furnishes the acquiring 
                        person such information as is necessary for the 
                        application of subparagraph (A),
                then, for purposes of applying this section for any 
                calendar quarter ending after such disposition, the 
                amount of wages or compensation deemed paid by the 
                employer during periods before such disposition shall 
                be reduced by so much of such wages as is attributable 
                to such trade or business or separate unit.
            (9) Employers not on quarterly system.--The Secretary of 
        the Treasury shall prescribe rules for the application of this 
        section in the case of an eligible employer whose required 
        income tax deposits are not made on a quarterly basis.

SEC. 3. PERMANENT EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 is 
amended by striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 4. BONUS DEPRECIATION MADE PERMANENT.

    (a) In General.--Paragraph (2) of section 168(k) of the Internal 
Revenue Code of 1986 is amended--
            (1) in subparagraph (A)--
                    (A) by adding ``and'' at the end of clause (ii),
                    (B) by striking ``, and before January 1, 2010'' in 
                clause (iii)(I),
                    (C) by striking ``, and before January 1, 2010, 
                and'' in clause (iii)(II) and inserting a period, and
                    (D) by striking clause (iv),
            (2) in subparagraph (B), by striking clause (ii) and by 
        redesignating clauses (iii) and (iv) as clauses (ii) and (iii), 
        respectively, and
            (3) in subparagraph (E)(i), by striking ``, and before 
        January 1, 2010''.
    (b) Conforming Amendments.--
            (1) Subclause (I) of section 168(k)(2)(B)(i) of such Code 
        is amended by striking ``(iii), and (iv)'' and inserting ``and 
        (iii)''.
            (2) Clause (i) of section 168(k)(2)(C) of such Code is 
        amended by striking ``, (iii) and (iv)'' and inserting ``and 
        (iii)''.
            (3) Subparagraph (B) of section 168(l)(5) of such Code is 
        amended to read as follows:
                    ``(B) by substituting `, and before January 1, 
                2013.' for the period at the end of clause (i) thereof, 
                and''.
            (4) Subparagraph (D) of section 1400L(b)(2) of such Code is 
        amended by striking ``clause (i) thereof shall be applied 
        without regard to `and before January 1, 2010,' and''.
            (5) Subparagraph (B) of section 1400N(d)(3) of such Code is 
        amended to read as follows:
                    ``(B) by substituting `, and before January 1, 
                2008.' for the period at the end of clause (i) thereof, 
                and''.
            (6) The heading for subsection (k) of section 168 of such 
        Code is amended by striking ``and before January 1, 2010''.
    (c) Effective Date.--The amendments made by this section shall 
apply to property placed in service after December 31, 2009.

SEC. 5. PERMANENT INCREASE IN LIMITATIONS ON EXPENSING OF CERTAIN 
              DEPRECIABLE BUSINESS ASSETS.

    (a) In General.--Subsection (b) of section 179 of the Internal 
Revenue Code of 1986 (relating to limitations) is amended--
            (1) by striking ``$25,000'' and all that follows in 
        paragraph (1) and inserting ``$250,000.'',
            (2) by striking ``$200,000'' and all that follows in 
        paragraph (2) and inserting ``$800,000'',
            (3) by striking ``after 2007 and before 2011, the $120,000 
        and $500,000'' in paragraph (5)(A) and inserting ``after 2009, 
        the $250,000 and the $800,000'',
            (4) by striking ``2006'' in paragraph (5)(A)(ii) and 
        inserting ``2008'', and
            (5) by striking paragraph (7).
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.
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